Question
Titan Mining Corporation has 7.3 million shares of common stock outstanding, 265,000 shares of 4.5 percent preferred stock outstanding, and 150,000 bonds with a semiannual
Titan Mining Corporation has 7.3 million shares of common stock outstanding, 265,000 shares of 4.5 percent preferred stock outstanding, and 150,000 bonds with a semiannual coupon rate of 5.4 percent outstanding, par value $2,000 each. The common stock currently sells for $64 per share and has a beta of 1.20, the preferred stock has a par value of $100 and currently sells for $92 per share, and the bonds have 16 years to maturity and sell for 106 percent of par. The market risk premium is 7.4 percent, T-bills are yielding 3.2 percent, and the companys tax rate is 22 percent. |
a. | What is the firms market value capital structure? (Debt, Preferred Stock, and Equity) (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) |
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